5 things to watch on the ASX 200 on Wednesday

Santos Ltd (ASX:STO) and Webjet Limited (ASX:WEB) shares will be on watch on the ASX 200 on Wednesday. Here's what lies ahead…

On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form and charged notably higher. The benchmark index surged 0.8% higher to end the day at 6,827.1 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

A vortex of ASX shares on the boards gets sucked into an Australian flag, indicating trading on the ASX share market.

Image source: Getty Images

ASX 200 expected to fall

The Australian share market looks set to drop lower today after a subdued night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 28 points or 0.4% lower this morning. In late trade in the United States, the Dow Jones is down 0.3%, the S&P 500 is down 0.1%, and the Nasdaq is up slightly.

Oil prices fall again

It could be a tough day for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) on Wednesday. According to Bloomberg, the WTI crude oil price is down 1.1% to US$64.69 a barrel and the Brent crude oil price has fallen 0.9% to US$68.29 a barrel. This was the third trading session in a row of declines for oil prices. Traders appear concerned that demand could soften as COVID-19 vaccine rollouts are halted in Europe.

Gold price flat

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after a flat night for the gold price. According to CNBC, the spot gold price is steady at US$1,729.30 an ounce. A firmer US dollar held back the gold price.

Shares going ex-dividend

A couple of ASX 200 shares are going ex-dividend this morning and could trade lower. Shipbuilder Austal Limited (ASX: ASB) and poultry producer Inghams Group Ltd (ASX: ING) are trading without the rights to their upcoming 4 cents and 7.5 cents per share dividends, respectively. Eligible shareholders will be paid these dividends in April.

Webjet rated as a buy

The Webjet Limited (ASX: WEB) share price could be in the buy zone according to one leading broker. According to a note out of Goldman Sachs, its analysts have initiated coverage on the online travel agent with a buy rating and $7.36 price target. The broker expects its Webbeds business to be a long-term growth engine for the company.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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